DATE: June 1, 2016
TO: Board of Mayor and Aldermen
FROM: Eric Stuckey, City Administrator
Russell Truell, Assistant City Administrator / CFO
Mark Hilty, Water Management Director
Russell Sullivan, Water Treatment Superintendent
Brian Wilcox, Purchasing Manager
SUBJECT:
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Acknowledge report of execution of Procurement Agreement with Gulbrandsen Technologies, Inc. of Clinton, New Jersey, in the unit amount of $0.247 per pound for an estimated quantity of 355,930 pounds per year of polyaluminum chloride for a term of award of up to five (5) years for the Water Treatment Division of the Water Management Department (Purchasing Office Procurement Solicitation No. 2016-023; Contract No. 2016-0104)
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Purpose
The purpose of this procurement is to purchase the supply and delivery of polyaluminum chloride, a chemical currently used in the process of treating raw water for distribution as potable water at the City’s Water Treatment Facility. Deliveries are to be made within seven (7) calendar days after receipt of order during the term of award which is to be a minimum of twelve (12) months effective July 1, 2016, not to exceed five (5) years.
Background
At its meeting on May 10, 2016, the Board of Mayor and Aldermen voted to award this procurement for polyaluminum chloride to Gulbrandsen Technologies, Inc. of Clinton, New Jersey. Pursuant to authority previously granted by the Board of Mayor and Aldermen to the City Administrator, the contract memorializing this award (City Contract No. 2016-0104) has now been executed by the City Administrator and is attached.
Financial Impact
As reported previously, the bid from Gulbrandsen Technologies, Inc. of Clinton, New Jersey, is in the unit amount of $0.247 per pound for an estimated quantity of 355,930 pounds per year of polyaluminum chloride. For a term of award of up to five (5) years, the estimated value of the Gulbrandsen Technologies, Inc. bid based on bid unit pricing and the specified estimated annual quantity is $439,574. As the value of bids for this product are based not only on the quoted unit pricing but also the estimated dosage of product required calculated from jar test results for the bid product, it is not meaningful to compare unit pricing with the last time, about this time in 2013, the City solicited bids for this chemical, but the estimated annual value of the 2016 apparent winning bid is $43,230 (97%) higher than it was for the 2013 winning bid (with a different bidder).
Recommendation
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Staff recommends that the Board of Mayor and Aldermen acknowledge receipt of this report of execution of a Procurement Agreement with Gulbrandsen Technologies, Inc. of Clinton, New Jersey, in the unit amount of $0.247 per pound for an estimated quantity of 355,930 pounds per year of polyaluminum chloride for a term of award of up to five (5) years for the Water Treatment Division of the Water Management Department (City Contract No. 2016-0104).